NM SB52

Repeals and replaces Section 10-11-118 of the Public Employees Retirement Act to tie cost-of-living adjustments (COLAs) for qualified pension recipients to the annual Social Security and Supplemental Security Income COLA rate

Qualified pension recipients include normal retirees (retired at least 2 years, or age 65+ and retired at least 1 year), disability retirees (retired at least 1 year), and survivor beneficiaries (receiving benefits at least 2 years)

Beginning January 1, 2027, the retirement board must annually certify the federal Social Security COLA rate, with adjustments applied each July 1 starting in 2027

Appropriates $50,000,000 from the general fund to the Public Employees Retirement Association for FY 2027 and subsequent years to fund the COLA adjustments, with unexpended balances not reverting to the general fund

Effective date is December 1, 2026